Gambling and Gaming Business Funding

Why lenders say no to gambling, casinos & gaming businesses

• The SBA excludes any business deriving more than one-third of gross annual revenue from legal gambling under 13 CFR 120.110(g), and any unlawful activity under 120.110(h).
• Several large online lenders list gambling as restricted, and most banks decline the industry by policy because a gaming customer brings Bank Secrecy Act obligations of its own.
• A gaming license is the business's most valuable asset and generally cannot be pledged or transferred without the regulator's consent, so lenders cannot take it as collateral.
• In many jurisdictions the regulator must approve or find suitable a lender, consent to any lien on gaming devices and approve any change of control a default could trigger.
• Gaming devices can only be held, moved and resold by licensed parties in states where they are legal, which leaves ordinary equipment lenders unable to repossess them.
• Sweepstakes and skill-game formats are lawful in some states and contested or prohibited in others, and no funding source writes a format its counsel cannot confirm is legal.

What actually gets funded

• Commercial real estate loans: Private, non-bank and some regional lenders finance the casino, card room or truck stop property, sized to appraisal and to coverage from the whole business, because the building is collateral that survives the gaming regulator.
• Licensed gaming equipment leasing: Manufacturer programs, participation leases and lessors licensed as distributors finance slot machines, tables, kiosks and systems once the regulator consents to the lien or placement.
• Private credit term loans: Secured term debt to licensed operators with regulator-reported history, taking non-gaming assets and, where permitted, an assignment of revenue, usually with a personal guaranty for smaller operators.
• Revenue-based financing on non-gaming receipts: Advances against food, beverage, hotel, fuel and retail card volume, which settle through the processor and need no regulator consent, priced on processor statements.
• SBA loans for businesses under one-third: A bar, truck stop or store whose gaming share is at or below one-third of gross revenue stays eligible, and some SBA lenders write it with the gaming line excluded from the cash flow.
• Conventional equipment financing: Seating, signage, surveillance, point-of-sale, bar, kitchen and fuel equipment financed by equipment lenders whose policy allows a gaming end user, with a down payment commonly required.

Gambling, Casinos & Gaming funding guides

• Funding a Business With Gaming Revenue: Bars, Truck Stops and Route Operators — A bar, truck stop or convenience store with video gaming terminals is two businesses to a lender, and a route operator is a gaming business outright. How each is funded and how to present the gaming line cleanly.
• Gaming Equipment Financing: Slot Machines, Tables, Kiosks and Systems — Regulated gaming equipment is financed by manufacturer programs, participation leases and lessors licensed as distributors, with the regulator's consent to the lien. How leases and loans work, residual value, and the refresh cycle.
• Casino and Card Room Financing: Real Estate, Equipment and Expansion Capital — Smaller regional casinos and card rooms are financed through a stack of real estate debt, licensed equipment leases and private credit, each needing the gaming regulator's approval. How lenders underwrite gaming revenue.
• The SBA One-Third Gambling Rule: Who Is Ineligible and What to Do Instead — Under 13 CFR 120.110(g), a business that derives more than one-third of gross annual revenue from legal gambling is ineligible for SBA loans. How lenders measure it, who passes, who fails, and the non-SBA paths.
• Gambling and Gaming Business Loans: Who Funds Casinos, Card Rooms and Gaming Operators — Licensed gaming businesses are financed by private real estate lenders, equipment lessors, private credit and revenue-based funders, not by SBA lenders or most banks. What exists, the licensing gate and how a file is placed.

How MercFinancial places gambling, casinos & gaming requests

MercFinancial is a commercial funding brokerage, not a lender, and it cannot approve a gaming loan or decide SBA eligibility. A gaming request starts with the license file and the regulator's reports: what is licensed, what the regulator allows a lender to take, and the revenue by line reconciled to the returns and bank statements. A funding specialist reads all of it before any lender is contacted and runs the one-third arithmetic where it matters.

From more than 160 wholesale and institutional funding sources, the specialist identifies the real estate lenders, licensed lessors, private credit funds and revenue-based funders whose policy allows gaming in your state, places one file with all of them, builds the regulator's approval into the timeline and compares the offers. Availability depends on the funding source, and when the format or the numbers cannot be written, you are told plainly. Stephanie, the AI lending assistant, pre-qualifies a request in two to three minutes with a soft credit pull, and a free 30-minute call with a funding specialist is booked on the contact page.

Frequently asked questions

Can a gaming business get a business loan?

Yes, if it is licensed and the format is legal in its state. Private and non-bank commercial real estate lenders finance the property, lessors licensed as distributors and manufacturer programs finance gaming devices, private credit funds write term debt to established operators, and revenue-based funders advance against non-gaming card receipts. The SBA and most banks are closed. Each product depends on the funding source and the regulator.

Why are casinos ineligible for SBA loans?

Because 13 CFR 120.110(g) excludes any business that derives more than one-third of its gross annual revenue from legal gambling, and a casino's revenue is predominantly gaming. Card rooms and route operators fail for the same reason. The rule is applied by the SBA lender at application and cannot be waived, so casino capital comes from private and regional non-SBA sources.

Can a bar with gaming machines get an SBA loan?

Usually, when the bar's share of net terminal income is at or below one-third of gross annual revenue and the SBA lender's own policy accepts gaming revenue. The lender measures the share from the regulator's reports, not an estimate, and commonly excludes the gaming line from the cash flow that supports the loan, so the bar and kitchen have to carry it.

Does the gaming regulator have to approve my lender?

In many jurisdictions, in some form. Regulators commonly require registration, approval or a finding of suitability for a lender to a licensee, consent to a lien on gaming devices or an assignment of gaming revenue, and approval of any change of control a default could cause. Counsel in the licensing state confirms the exact requirement, and the approval is usually the longest item on the timeline.

Does MercFinancial lend to gaming businesses directly?

No. MercFinancial is a brokerage in Houston that reviews the license file and the numbers, identifies the funding sources whose policy allows gaming in your state, places one file with those sources and compares the offers. Every loan is made by a third-party funding source that decides approval, amount, rate, term and fees. When nothing fits, you are told plainly rather than sent an application that will be declined.

Financing for this industry

• Business Funding — Eight programs, one file, 160+ lenders.
• Real Estate Funding — DSCR, fix and flip, construction, bridge and portfolio loans for investors.
• Unsecured Business Loans — Term loans and lines without specific collateral, for businesses with steady deposits.

Related industries

• Bars, Nightclubs & Liquor Stores
• Adult Entertainment
• Restaurants, Food Trucks & Food Service